PM breaks silence over slowdown, asserts India will emerge stronger

Attacking the Congress-led UPA government, he said the GDP growth rate had fallen to 3.5 per cent in a quarter and touched lows in successive quarters then and asked “why were people keeping quiet at that time.”

Addressing the inaugural session of 100 years of trade body Assocham, he, however, expressed confidence that Indian economy, which has seen ups and downs in the past, and would come out of it much more strong and with resolve and that the goal of $5 trillion is achievable.

Without uttering the words slowdown over which opposition parties have attacked him for maintaining “silence,” Modi said he was aware of what was happening about the economy over which there has been a lot of debate in the country.

“A lot of criticism has been made. I take positives from such a debate. I want to go forward with good things. When you talk about the current economic situation, it is also necessary that in the midst of this debate one should keep in mind that the GDP growth rate for one quarter had fallen to 3.5 per cent during the term of the previous government. “You have to keep in mind that at that time CPI headline inflation soared to 9.4 per cent, CPI core inflation touched 7.3 per cent, WPI inflation remained at 5.2 per cent and fiscal deficit was 5.6 per cent of GDP,” he said attacking the UPA government’s handling of economy.

Modi said during successive quarters then the GDP growth rate had gone down and there was an atmosphere of disappointment.

“I don’t want to go into it. But at that time some people were keeping quiet. The country has seen such ups and downs in the past also. The nation has the capacity to come out of such difficult situations stronger than before. From the present situation also, India will emerge with new strength and resolve,” he said to cheers from the assembled gathering of corporate world, diplomats and others.

During the NDA dispensation, GDP has fallen for six consecutive quarters to a six-year low of 4.5 per cent in July-Sept this year consequent to a slump in manufacturing and declining consumption.

“The government’s intentions are clear. In my case you don’t have to doubt it. It is my government’s identity,” he said. In his 50-minute speech, the Prime Minister said the idea of making India a $5 trn worth economy is not a sudden one.

He said that in the past five years the country had made itself so strong that it not only could set for itself such a target but also make efforts in that direction. “Five years before, the economy was heading for disaster. Our Government not only stopped this but also brought in a discipline in the economy.”

“We brought in fundamental changes in India’s economy so that it can run with set rules in a disciplined manner. We have met with the decades old demands of the industrial sector and we have built a strong foundation for a $5 trn economy.”

He said, “We are building the Indian economy on two strong pillars of formalisation and modernisation. We are trying to bring in more and more sectors into the horizon of formal economy. Along with this we are linking our economy with latest technology so that we can speed up the process of modernisation.”

“Now instead of several weeks it merely takes a few hours to register a new company. Automation is helping quick trading across borders. Better linking of infrastructure is reducing the turn-around time at ports and airports. And these are all examples of a modern economy.”